Single-stage Regulation Impact Statement – Shortage of some

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Single-stage Regulation Impact Statement – Shortage of some
Your Ref: 16169
Mr Jason McNamara
Executive Director
Office of Best Practice Regulation
Department of Prime Minister and Cabinet
Dear Mr McNamara
Single-stage Regulation Impact Statement – Shortage of some species of synthetic
greenhouse gases
I am writing in relation to the attached final details-stage Regulation Impact Statement (RIS)
prepared by the Department of the Environment concerning transitional exemption
provisions for bulk synthetic greenhouse gas importers in advance of the repeal of the
equivalent carbon tax.
I am satisfied that the final details-stage RIS addresses the matters raised in your letter of
12 November 2013.
Compliance Cost Estimates
The RIS currently states that no mandatory compliance costs will be imposed on industry by
the preferred option. Further explanation has been provided to support this assessment
including a summary of stakeholder feedback and a table outlining the expected compliance
costs.
RIS Adequacy
The RIS outlines why the grant or rebate option provides less financial or legal certainty for
industry. Discussion on why uncertainty makes this option less appropriate than the
preferred option has also been included.
The RIS now provides a critical assessment of the claim that the legislation option may result
in a $10.0 million loss to revenue in 2013-2014. The RIS explains what assumptions support
this estimate. The revenue loss was agreed by the Treasury.
The Department notes that the revenue loss through a legislative or rebate option may be
less than $10.0 million, as without such an option business might change behaviour and
delay importing some bulk synthetic greenhouse gases until after 1 July 2014 in anticipation
of non- equivalent carbon tax gas supplies. This is discussed further in the RIS.
GPO Box 787 Canberra ACT 2601  Telephone 02 6274 1111  Facsimile 02 6274 1666  www.environment.gov.au
I am satisfied that the final details-stage RIS meets the Government’s best practice
regulation requirements and submit the attached certified final details-stage RIS for
assessment against the Australian Government’s RIS requirements.
Yours sincerely
Dr Stephen Kennedy
Deputy Secretary
Department of the Environment
12 November 2013
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